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tv   Mad Money  NBC  July 27, 2012 3:00am-4:00am EDT

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>> whoo! >> beautiful. >> so we had the worst day and the best day today with music, right? >> that was awesome. we love you. >> rock. >> come down and see us tomorrow >> rock. >> come down and see us tomorrow on the plaza 8:00. -- captions by vitac -- www.vitac.com business, and he's nuts. they're nuts. they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job isn't just to entertain but i'm trying to educate and teach here. call me at 1-800-743-cnbc. let me ask this question. how many times have i come out over the last seven and a half years and told you do not get too negative? i don't know. 250, 300, 437? today is one of those reasons why i never want you to get too pessimistic. not just because the dow went up
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212 points, the s&p up the 2 and the nasdaq up 1.37%. ♪ hallelujah >> just when you least expect it and the professionals least expect it you get a major move that will allow you to be as negative as you want and -- [ sell, sell, sell ] sell, sell, sell all you want, but at much higher prices. it can all happen in the blink of an eye. the blink of an eye or at least the time it takes to get a cup of coffee as it did this morning for me. in the interest of total insanity let me tell you how things unfolded today from the eyes of this grizzled veteran. first, i got up at 3:45 a.m. not unusual. i am a ridiculous insomniac who now sleeps past 2:45 a.m. gratefully, the time i woke without an alarm when i had the hedge fund. the additional hour allows me to be less tired. i go to bed at 11:00 or when the phillies are done losing and i
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can practice anger management skills. today i get up when most cool people are still going to sleep. i'm the definition of uncool. i fire up the machines to see how things are doing in the market overseas. the market passes as my personal life. if you want a nightmare image, imagine a 67-year-old guy in boxers staring at his terminal and going to my twitter to give impressions while attacking people for not getting what the heck i'm talking about. why should this day be different from another day? we're looking ugly because of the lunatics in europe. [ house of pain ] [ sell, sell, sell ] >> who refuse to do anything that can be considered mildly positive. i throw some gym shorts on and a workout shirt. we did the show from happy valley a couple years ago and i blast the televisions while on
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the treadmill listening to a fan of the darkness, "call me maybe" and "payphone," the profane version, so i can drown out the gloom of the team on tv. sure enough, there are some guests on talking about how the world will end august 20th. always like a goes of certainty. that's the day greece will default on the last bailout. and make a mental note to stock up on canned goods on the 19th. and switch to "go your own way" by fleetwood mac because i'm really old. the expert is jabbering about the spanish treasury which will bring down italy, the third biggest bond market. spain brought down italy in the soccer finals. wouldn't be the first time. next thing i know there is someone squawking about how spain's largest bank has reported a a horrible quarter. all i can think is this is a bank that was healthier with the stock symbol std than it is now
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with san and that's a public health first. after hearing some down beat clowns talking about half a dozen companies, including siemans were reporting disappointing earning because europeans are frittering while rome and madrid burned. half an hour on the treadmill and next thing you know, you've got a real ugly day on your hands. why? because of europe. so i shower, shave, put on a suit. jump in the car. work on the morning memo skewed to how horrible europe is. [ booing ] [ train wreck ] i write a piece to touch on the euro weakness and the apocalypse and how the spanish bonds continue to trade like they will default. the next thing you know, then i'm downtown where i slam my p.c. shot after looking at the red ink throughout the screen
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and the future is getting ugly because of europe. jump out of the car and go get my coffee. same stand, same time, same drink every day as i have for a decade. i always get down there early. although now i've been up for four hours, and i hate to mismore than a minute of trading between when i get up and get out of my car. but today some joker is ordering hazelnut coffee ahead of me. somehow the order is mixed up. he's got regular. he's unhappy and is demanding hazelnut and i'm going nuts because it is taking forever. he's finally served. i run upstairs and bingo, the market is up huge. the dow which was looking down about 40 points is now looking up 200 points. 200 points? why? because the european version of ben bernanke says he'll preserve
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the euro and these big sovereign bonds markets by any means necessary. goog t that. you'll see. in the time it took to get some coffee mostly because of the hazelnut nut the market took off by 2% like the time i went out to grab burger king and the berlin wall came down in the time it took to have it my way. suddenly everything hideous up huge, except for facebook, of course. the best performing security, the spanish five-year bond that was the worst when i was on the treadmill and got me thinking about building a fallout shelter. the one that the bears were talking about. everything people gave up on that you wanted to sell out in disgust or desperation because of european dithering is roaring. because the europeans aren't dithering anymore. will it last? no. it never does. that's why caution is still the watch word.
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usually about 24 hours after we get any good news out of europe, angela merkel, the iron chancellor of germany says she can't go with a central banker who wants to save things. the good news, merkel's on vacation. the bad news, they have phones, the net and tv there. won't be long before she pulls the rug out of the rally. here's the bottom line. get too negative, give up, decide it's ridiculous to contemplate owning stocks while you get the end of the world trip tik together, that's exactly when lightning strikes. giving you a better, higher exit point. believe me. whatever the europeans give to you, they can take away just as fast. especially if you are stuck in line behind a guy who has the guts to order hazelnut. can you believe it? right in front of you. steve in colorado, please. steve. >> caller: hi, jim. a big broncos start of training camp boo-yah to you. >> i like it.
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a lot of other teams, too. i salute the idea. >> caller: thank you for all you do to educate the little guys. >> thank you. >> caller: with the european troubles affecting germany, siemans has been beat down almost 40% from the high and is above the 52-week low. it's at $81 and change. considering the large percentage of their revenue comes from sales in asia and north america is s.i. a buy? >> here's the problem. first of all, i would say yes normally. because it fields 4.5%. here's the problem. it is priced in euros. so even if you have unilever which reported a terrific number you didn't make much because the stock is in euros. by the time you translate it to the strong dollar it doesn't do well. yes, it is a great company with a great yield but i'm not recommending a european industrial because of the currency problems i see happening for a foreseeable future. frank in europe, please. frank.
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frank? >> caller: yes, jim! boo-yah! >> boo-yah. >> caller: thanks for the help for the little guys. >> much appreciated. >> caller: two questions. number one, dunkin donuts. why did they bomb today? that's a long-term growth story. i don't think people are giving its due. why doesn't at&t buy dish? they need spectrum and dish has it. >> we never speculate on takeovers. if we knew we shouldn't be talking about it. i can talk about dunkin donuts. i agree. i thought that the quarter was fine, it was in line. this is the first quarter they didn't blow it away. people worry about insider selling. it's an opportunity. don't have to be aggressive. starbucks reported a not great quarter so coffee should be down but not out. i like dunkin. warren in colorado. warren. >> caller: a big boo-yah from denver. >> give you a broncos opening day boo-yah. >> caller: thank you. >> you're welcome. >> caller: abx. barrett gold. i'm down 15%. should i sell now and cut my
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loss or buy more and lower my average cost? >> boy, you have gold up big in the last couple of days. barrick is hitting a low. i tell people please don't buy the gold stocks. buy gld. agnico eagle had a quarter that wasn't horrid and it went up. i think barrick bounces. but i want you to sell barrick and play with the gld. just when you thought the market was going to fade into darkness it flips the switch. we have a great day. but it may not last. so why not ring the register on some of the bigger gains? stick with the dividends, the domestic stocks. they will keep working. "mad money" will be back. >> announcer: coming up, gravy train? locomotive giant csx has lost steam in the past year, down over 10%. could it come around the turn? cramer is getting a read on everything from auto to ag to coal as he finds out if it's time to take a ride as he talks to the rail operator's ceo.
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later, oh, doctor. investors bid on shares of health care products maker govidian after strong sales of medical devices. is there room for the company to make a healthy run higher? cramer is giving his prognosis in an exclusive with its ceo just ahead. plus, omg, not. don't believe the hype as this social gaming play. but cramer found one stock that flew in the opposite direction. tonight he's deciding if it could dial up more returns. all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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another cup of coffee? how long is this one going to last? forty-five minutes? an hour? well... listen. 5-hour energy lasts a whole lot of hours. take one in the afternoon, and you'll feel alert and energized 'til the cows come home. it's packed with b-vitamins and nutrients to make it last. so what's it going to be, partner? 5-hour energy. wise choice. 5-hour energy. hours and hours of energy. well another great thing about all this walking i've been doing is that it's given me time to reflect on some of life's biggest questions. like, if you could save hundreds on car insurance by making one simple call, why wouldn't you make that call? see, the only thing i can think of is that you can't get any... bars. ah, that's better. it's a beautiful view.
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introducing zzzquil, the non-habit forming sleep-aid from the makers of nyquil. ♪ we want to know how the economy is really doing, not how the politicians think it is doing but the reality based on the facts on the ground. you need to crack open the railroads and look inside. anything has to be transported and the cheapest way to do it in bulk is by train. i think the rails are the backbone of any economy. we have heard from csx last tuesday, northern pacific, norfolk southern. based on what they have to say,
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i think it's clear that things in the united states are better than you think. not great by any stretch of the imagine nax -- imagination, but not that horrible either. csx is the best run railroad. while coal carloads which everybody is worried about were down 14% from the year before export coal was up year over year. meanwhile excluding coal csx carloads were up 4% with terrific strength in industrial including phenomenal automobile lovers. csx had an optimistic outlook. to get a better sense of how they are doing and a broader read on the u.s. economy i'm thrilled to have michael ward, chairman and ceo of csx here tonight. welcome back to "mad money." >> glad to be here, jim. >> everyone wants to dwell on coal. i want to dwell on the u.s. economy. from what i heard a lot of things are going right, not wrong. >> you're right. if we take away the utility coal
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that's way down the carloads were up 6% in the second quarter as they were in the first quarter. nothing spectacular, but just solid, steady growth. you alluded to automotive. that's gone gangbusters, up 27% in the quarter year over year. >> that's a big part of the u.s. economy. >> absolutely. >> you have to buy them, build, sell them. when i see that it tells me that while dow chemical, an important company reported today, the u.s. is really coming down. that would be reflected in the numbers you gave me. it's not. >> the expectation is 13.1 million light vehicle production last year. 14.9 is the expectation this year. >> one of the biggest we have had. >> absolutely. >> you have a bunch of things. you have a terrific slide presentation. intermodal export coal, automotive and chemicals are favorable. that's 58% of the volume. >> absolutely. as we look at the third quarter we think 80% of the markets are stable to up. only a few markets are challenged.
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utility coal will continue to be challenged but not as severely. >> natural gas and warm weather. >> and the epa as well. do you know what's interesting? you mentioned the coal concern. >> right. >> let me give you one perspective. we knew by 2015 a lot of older coal fired plant would be shut down because of epa regulations. >> right. >> all that's happened is it happened more quickly. in 2006 we had 1.5 million carloads of utility coal. last year we had one million. lost a third of the business. >> that's big expense. that's a lot of money per car. >> people would think it would have our company in trouble. in those six years we set records in five of the six. the only one we didn't was 2009 which was our second best year at the time. through intermodal, automotive, productivity we have managed to keep the profitability up even with the decline in utilities. >> i want to take issue with one of the lines here. you have neutral. what's good, bad, neutral.
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forest products, demand for housing -- for building products recovering slowly. hasn't that changed? i'm watching the price of lumber go up, listening to home builders. you may be too pessimistic on that one. >> we are seeing growth, but the base is way down. >> that's a good point. >> percentage base may look healthy, but it is so far down from what it was in the past. it's still not significant in the overall scheme of things. it is encouraging that it is moving in the right direction. >> you call out. i know that one of the problems with coal is natural gas. you call out chemicals getting better. that's natural gas. you also talk about fracking and oil and gas and drilling. how's it going? >> good. it's a nice new market for us. lots of excitement around it. natural gas drilling is here to stay. we're also finding opportunities in the shale for oil cars to come east in tank cars. we think that's a great
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opportunity going forward. >> many people feel, listen, you're gdp and nothing else. the productivity gain is amazing. you have a new hub you said would be big. it is big. >> northwest ohio is doing great. it's doing everything we thought. it's cost effective. we are saving money using it and it is opening new markets for us. on the productivity side, jim, we started the year with # 130 million in productivity. we are expecting 180 million plus. >> how do you do that? there are not that many people involved in a train. diesel fuel, you're a huge user. it's working your way. how do you get productivity gains given that you have been getting them for years and years? >> what's happening is we are providing high levels of service to customers now. contrary to some people's belief, good service is less expensive. we have less recrews, better car utilization, locomotive utilization.
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so we're running a high level service for the customers and it's cost effective. >> i was talking to david faber and he said how many more cars can you add before the trains go too slowly and you can't do the numbers. >> we have good room for growth. on the intermodals we could add 10% to 15%. that's as they exist today. on the merchandise side 15 to 20%. we have room to add to existing trains. and as you know, that's great incrementality. >> one of the problems we are having in this problem is agriculture. you allude to the fact that ag could be a tough market for you. you have always been a dominant ag player, fertilizer and crops. >> and, jim, it's getting worse. you go back two weeks ago it was 141 bushels per acre. it's down in the 130s now. the drought will affect that and the fertilizer market as well.
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we have to deal with what we have. unusual movements in grains to feed the pigs and chickens. >> let me ask you philosophically. if you wanted to save -- i'm asking from -- perspective. he says why don't the railroad guys start buying new natural gas engines? next thing you know they are saving money on diesel fuel. is that going to happen? >> i don't know. there's been research done but there are challenges to that. you put that behind and right now we cannot have a device that's explosive behind a locomotive by law. if we have a chemical car it has to be further back in the train to protect the crews should there be an accident. >> okay. >> there are issues to work around with the idea. in the old days with steam locomotives, obviously the coal was no risk. and you have to think about the infrastructure you have to build to put that gas in the locomotives. >> one last question. it's always crazy to me.
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a railroad has to worry about european demand. >> yes. our export coal, about half of it goes to europe for both thermal and steel making. obviously we hope europe resolves their issues, jim. >> nobody's all domestic. michael ward, fabulous job. making money when you shouldn't be given the coal exposure. chairman, president and ceo of csx corp. this is a cheap stock. looking for a stock that can still go up, take a look at csx. >> announcer: coming up, oh doctor. investors bid up shares of covidian after strong sales of medical devices. is there still room for the company to make a healthy run higher? cramer is giving his prognosis in an exclusive with the ceo next. hey!
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even in today's rally we still need to play it safe. the danger doesn't go away because the head of the european
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central bank is making soothing noises. but it's nice to hear something positive from europe for once. what do i mean when i talk about safety? companies with big dividends are part of the equation. so are companies that are well run with stock beaten down so there is nowhere to go but up. then there is the shawshank contingent. companies that understand they either have to get busy living or get busy dying like cov, the topnotch medical equipment maker that just this morning reported a terrific quarter. a thing of beauty. stock is up 4.6%. i have been a big fan because it is breaking up. spinning off the pharmaceutical division which i believe is preventing the company from a premium valuation. after the spin off which should happen by the middle of next year the device company will represent 81% of sales. this will with a fabulous medical device. today we find out there is more to the story than a simple break-up play. not just that management is
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taking drastic action. they are also executing like champs. they beat the estimate by a penny and the revenues were in line year over year as the weakness in europe was offset by, quote, outstanding growth in emerging markets. this is a company that makes a lot of acquisitions. we really want to care about the organic growth which tells you how the underlying business is doing excluding deals. that's what was terrific here. the organic growth was tremendous. it was up close to 6% in the u.s. medical device business up 8%. seems like they are doing a tremendous job while we wait for the pharma spin-off. don't take it from me. let's check in with the chairman and ceo to learn more about this quarter and where the company is headed. welcome back to "mad money." >> thank you. how are you, jim? >> real good. but not as well as you. after i went through every medical device play you had the best growth and you did it with
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the least risk. why is it they are saying how, given the fact that everyone else had negative second quarter numbers were you able to have the strongest results of any large cap company in your business? >> it's about choices, jim. we made a significant amount of choices a few years ago in terms of the space we participate. it was about portfolio management in a tough allocation of capital internally in the company. today's results, we were able to capitalize in great growth and then launching a new product 18 months ago they are getting to peak sales now. our neurovascular, peripherals business is doing well and emerging markets. all the things are kicking in. because we are a larger company today we have the ability to hedge our bets and be able to have a balanced portfolio across the globe. >> one thing that stuck out is a lot of companies in your
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business don't spend a lot on research and development. you're spending 5.3% of sales, increased 15%. what bang for the buck does it give you? >> that gives us a significant amount of growth on a yearly basis. the organic growth is coming in great part by the investments in r & d. if you think about covidien in relation to competitors, we are lagging behind on spending and r & d, hence the growth of 15%. i would like to highlight that we also invest in a significant amount of r & d in emerging markets. we have centers in india and china where we are starting to do r & d for exclusively emerging markets. >> how much of the business are people electing to have something with covidien and how much is a matter of course. you're sick, you use covidien. >> i will tell you most of our business are for people who need
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and must use our products. in terms of elective procedures we have a little bit of elective procedures but most of what we do is acute care in hospitals. >> isn't that why europe was strong for you, spain. you don't see the decline some companies have talked about with weakness in europe. >> well, we do have good growth in places like germany, france, somehow uk. we were surprised with the decline of spain. as i said before, at one point in time people need to get the treatment. treatment is what we offer. i'm happy to be in a business that has a portfolio that's so balanced that allows us to go through crisis in a more even way. >> i have been telling people that when the supreme court upheld obama care this is great for companies that sell into large hospitals. you have an entrenched base in large hospitals.
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were you thrilled that justice roberts sided with the democrats and said that this law should stand in this country? >> you know, jim, we are all for access of health care. so as the population in the u.s. grows and have access to health care it's a good thing for our people. it's a good thing for our company. so when we look at the advantage in a market where large hospitals and acos will be present, covidien offers a large portfolio of products that can be beneficial for the clinician, patient, hospital and covidien. >> it's so small it can't move the needle. i don't want to get ahead of myself because i get excited when i see someone moving into china. russia is doing the best of the brazil, russia, india and china. how important are those markets now and where will they be five years from now?
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>> they are very important. we are over a billion dollars in emerging markets today. our plan is four to five years to double to $2 billion. they are becoming more important to covidien. it's not only penetration in emerging markets. it's the penetration where the right products. we do not sell every product in emerging markets, but we sell the products that make more sense for the markets and patients in those markets. >> thank you, joe. chairman, ceo and president of covidien. terrific return with less risk than almost everybody else. thank you, sir. >> thank you, jim. >> company's breaking up. company's got a good balance sheet. great r & d. company's got the great product. this is the stock you buy after the hoopla over what happens in germany and what happens in europe dies down. that's why i like covidien. stick wit. stay with cramer. >> announcer: coming up, omg not. don't believe the hype today.
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has this social gaming play cratered? and cramer found a stock that flew in the opposite direction. tonight he's deciding if it could dial up even more returns. [ female announcer ] looking for the right fit? [ grunting ] [ female announcer ] no worries! with aussie's simple, new hair solutions... [ whip cracking ] [ female announcer ] ...you're sure to find the perfect one for you. [ grunts ] [ female announcer ] add some roo to your do!
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used dishcloths. they can have a history that they drag around with them. try bounty extra soft. in this lab demo, one sheet of bounty extra soft leaves this surface 3 times cleaner than a dishcloth. the cleaner way to clean. bounty extra soft. >> it is time. it is time for the lightning round. you say the name of the stock.
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i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." starting with eddie in florida. eddie. >> caller: boo-yah, jim, from tampa, florida. >> boo-yah, sunshine. doing well. how are you? >> caller: wonderful. can you help me with l.e.g.? >> all right. i have to do a further analysis. this is one of my housing plays. i follow this company. we did report it to the bell. they said the forecast is good. i want to come back and do more. i have not listened to the conference call. travis in indiana travis. >> caller: hey, jim. big boo-yah from muncie, indiana. >> oh, man. ball state rocks! what's up? >> caller: go cardinals. my question is about alliance technology. algn. >> this is invisalign, something that does what braces do. i like the company. i recommended it and it did do poorly. it's come back. i stand by it.
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it's terrific. [ buy, buy, buy ] daniel in virginia. daniel. >> caller: jim, this is daniel from northern virginia community college giving you a boo-yah! >> college guys and gals continue to love the show. thank you. >> caller: i just want you to know my dad and i have all your books and we enjoy them. >> thank you. >> caller: hey, just have a question for you i'm looking at ltl, lg display. they have an interesting background, no debt on total assets and no dividend for the past three quarters. they are working with sharp and are about to work with apple for the iphone 5. >> i know. i'm not going to recommend this stock. i have a problem with american stocks. i would rather go buy apple which reacted badly again today. all i can tell you is it's an opportunity. i suspect because of how bad facebook is maybe tech goes down again tomorrow if that's really tech. brad in connecticut. brad.
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>> caller: hey, jim. a mario draghi boo-yah to you. >> i was going to give you a husky boo-yah, but i'll take that boo-yah. >> caller: living the dream. kellogg is down about 16% from the high last summer. >> yeah. >> caller: it now is a forward pe below 13 and a p.e.g. ratio below two. it raised the dividend 2% last week to yield a juicy 3.8%. what do you think? >> i think kellogg is poorly run. i would rather buy another -- look at hershey. magnificent quarter. up another dollar. kimberly clark, tremendous consumer package. good play. here is the problem with kellogg. they don't seem to be able to do anything right. the last few quarters have been bad. they told a good story on "squawk on the street" and didn't have it. no to kellogg. [ sell, sell, sell ] mike in illinois. mike.
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>> caller: hey, jim. this is mike from chicago with a windy city boo-yah! >> well done. boo-yah back at you. thank you. what's going on? >> caller: i can't sleep at night. the mattress industry is driving me crazy. i decided to short select comfort. >> you're shorting it? we don't want to play in the mattresses. they are too hard. we try, we did analysis of one or the other. i have to tell you. [ don't buy ] that's the best adviceky give you. peter in new york. >> caller: hi, jim. my son and i appreciate you. we love your energy. >> thank you. big backers of rockland here. what's going on? >> caller: our stock is atrs, antares pharma. the revenue increased and they have several large license agreements with large pharmaceutical companies
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including teva watson and pfizer. what do you think of the long-term prospect? >> all right. we have had mixed success with these injectables. we have to do more work on this company. we can't just opine on it. this business has been up and down. i promise to come back. i don't have a ready answer. tom in illinois. tom. >> hi, jim. how are you doing? big boo-yah from illinois. >> what's going on? >> caller: we call this the land of the overtaxed. a question for you. i have been in and out of f5 networks. there is short selling going gone at this point. what's your opinion? >> i was surprised there is so much negativity. i'm going to tell you i would rather see you in salesforce.com. that's a better cloud play. i'm willing to stick my neck out with the only deep in the money call. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ]
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>> announcer: the lightning round is sponsored by td ameritrade. trick question. i love everything about this country! including prilosec otc. you know one pill each morning treats your frequent heartburn so you can enjoy all this great land of ours has to offer like demolition derbies. and drive thru weddings. so if you're one of those people who gets heartburn and then treats day after day, block the acid with prilosec otc.. and don't get heartburn in the first place. [ male announcer ] one pill each morning. 24 hours. zero heartburn. [ male announcer ] one pill each morning. how much coffee are you fellows going to need today? three...four cups? [dumbfounded] well, we... doesn't last long does it? listen. 5-hour energy lasts a whole lot of hours. so you can get a lot done without refills. it's packed with b-vitamins and nutrients to make it last. so don't just stand there holding your lattes, boys. make your move. we'll take the 5-hour energy. smart move.
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5-hour energy. hours and hours of energy.
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look, today's fantastic rally proves getting emotional about investing doesn't make you. [ ka-ching ] money. you can't get yourself get too excited. how do you regulate? lots of homework, find companies with great management, internal catalysts and of course the over arching key to it all is diversification. which is why every week we play am i diversified. you call or tweet me @jimcramer. tell me your top five holdings and i tell you if it is diversified. maybe you need to [ buy, buy, buy ] or [ sell, sell, sell ]
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starting with a tweet from james edinburgh who writes, thanks for the help. am i diversified. apple, caterpillar, deere, disney, monsanto. [ buzzer ] let's go to work. this is complicated. caterpillar, a great manufacturer. terrific. apple, how many times have i recommended that stock? technology. disney is entertainment owned by my charitable trust. here is a problem. deere, ag monsanto is a cheap stock with a good chart, long-term. we have to get rid of john deere and we have to put in a health care stock. what we are going to do is buy bristol-myers. so we are going to [ sell, sell, sell ] deere and [ buy, buy, buy ] bmy. now to karen in west virginia, please. karen. >> caller: yeah. a big boo-yah from the mountaineer state.
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>> right back at you. >> caller: i want you to know you are one of my favorites ever since you started. you are the prime reason i started investing after 50. >> you are too kind. that is the essence of the show. thank you so much. let's make money together. >> caller: i need your advice. >> okay. >> caller: i have stocks i would like you to evaluate. >> sure. >> caller: first is at&t. boeing. the next one is merck. >> mm-hmm. >> caller: then johnson control. jci. and then baker hughes, bhi. >> all right, karen. let me go to work. [ buzzer ] go mountaineers. beautiful school. great place. merck, drug company. 4% yield. baker hughes, coming back from the dead which it definitely was.
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oil service. boeing, top flight aerospace name. action owners plus.com. terrific. that's aerospace. at&t, utility. verizon people not thrilled with the idea that at&t is cheaper than verizon. both work. finally, johnson controls, an industrial, but a bad industrial. i would trim johnson controls. you have industrial, aerospace, oil, drug and utility. i say bingo, well played. congratulations. ♪ hallelujah thank you for citing me as one of the reasons why you got involved in the game. let's go to brian in new york, please. brian. >> caller: boo-yah, skee-daddy. >> what's up, chief? >> caller: here are my stocks. mcdonald's, apple, nike, iau, and yum brands. jim, i just want to thank you and everyone on your team for all the great advice you give. i love the action alerts plus. yes, thank you very much. >> you're terrific. thank you.
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my team is the best in the world. let's go to work. [ buzzer ] first of all we have ishares gold. always have gold in the portfolio. that's a great way to do it. mcdonald's. a lot of people are second guessing it. it's one of the greatest franchises in the world and perhaps discounted to the usual growth is the time to buy. yum. well, we'll come back to it. apple, 25 points among friends. yesterday was fine. nike, this is a retail and a power play i think is terrific. we have retail, tech, gold. here's the problem. we have two restaurants. this is kfc and taco bell. 15%. really taking share there. we have to sell yum. that's a china play. keep mcdonald's. we're going to replace it, again, bristol-myers. you need a drug company with a good yield. that fulfills it. keep playing. thank you for the kind words. glen in the illini. glen?
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>> caller: hi, jim. how are you? >> pretty good, partner. >> caller: a super hot and humid boo-yah from the shores of lake michigan in the windy city. >> let me give you a super hot and humid east coast boo-yah. go ahead. >> caller: my stocks are disney, emc corporation, conoco phillips, whole foods and i'm sure you would have put in wells fargo here but i chose bank shares, which is huntington, which i think is just as good for a fifth of the price. >> for a fifth of the dollar price, not necessarily cheaper. first of all, i like huntington bank. good yield, good management. disney, they are doing an unbelievable job. this is not just tv. espn, theme parks which are doing well and cruise lines. conocophillips, good yield but i wasn't happy that they were not buying back stock here.
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it is good oil and gas play. whole foods. this morning on squawk. unbelievable quarter. what can i say? emc, a tech name. tech, food play, oil and gas, entertainment and we have bank. bingo! fabulously played. great contestants. stick with cramer. we know a place where tossing and turning have given way to sleeping. where sleepless nights yield to restful sleep. and lunesta can help you get there, like it has for so many people before. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. abnormal behaviors may include aggressiveness, agitation, hallucinations or confusion. in depressed patients, worsening of depression,
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including risk of suicide, may occur. alcohol may increase these risks. allergic reactions, such as tongue or throat swelling, occur rarely and may be fatal. side effects may include unpleasant taste, headache, dizziness and morning drowsiness. ask your doctor if lunesta is right for you. then find out how to get lunesta for as low as $15 at lunesta.com. there's a land of restful sleep. we can help you go there on the wings of lunesta. with the azerbaijani wrestling team. ♪ can febreze air effects defeat the smelly air in their gym for good? [ man ] what can you smell? [ inhales deeply ] a lot of flowers. it's on the zingy side of floral. potpourri factory, maybe. you can take off your blindfolds now. oh my gosh. [ laughter ] [ male announcer ] success. victory over odors, for good, both here and in your home. febreze. breathe happy. properly inflated tires canod, both here and in your home. increase fuel efficiency by three percent.
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that's about 8 cents a gallon, and that can really add up over the next few years. see, going green can save you green the more you know.
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sprint and zynga. could there be a greater contrast? two stocks on two very different paths. two stocks that passed each other today. one going up, one going down. a robert frost moment. two stocks diverge and if you took the one less traveled by it's made all the difference. sprint looked like it was headed to bankruptcy because of losses and the need for capital. now on the strength of excellent execution and sheer ingenuity from one of my favorite ceos sprint's future is bright and the $2 ugly duckling is a $4 swan. i think they can go higher. in part because it is hated by analysts. many of whom will be forced to upgrade the stock thanks to the operating improvement. zynga, on the other hand -- booing ] >> is part of a group of stocks, the second wave of hyped internet names this time with a
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sexy social rubric attached that have blown up in people's faces in a horrendous way. witness how facebook imploded after hours after it reported the first quarter as a publically traded company. it was rocked hitting an all-time low after the 8% decline today. zynga, it is still too early to buy. it was $15 and it's now $3. it was much loved by wall street, incluing today, before it reported a hideous quarter losing 40% of value in a session as a slew of brokerage houses took it off the buy list. what was it doing on there anyway? how could this company which was guiding for earnings gains of 23 to 29 cents telling us it could learn four to nine cents. the one thing they have in common is that the clueless analysts who follow both stocks have done a terrible job of adding any value. in fact, they have subtracted from it. i think sprint's in it for the long haul. it is making more money per subscriber than it was a few months ago. it's embraced the iphone and has
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the best bargains for customers when it comes to data use. the rally in common stock will help continue to raise capital needed to transition nextel customers to sprint. they will lap up all the new high yielding bonds they can issue. how about zynga. i'm addicted to scramble with friends and i have learned never to play for anything including the little yellow gold coins that help you win. i like the free aspect of the games. from the earnings i'm not the only one who won't pay up. the earnings are pointing to losses, not gains and the nature of gains. omg pop, it makes it unpredictable. so many stocks are left for dead when they get to two bucks, including nokia and radio shack. it's a rare bird that can come out of the $2 death trap. sprint is one of them. zynga, welcome to the graveyard that the wall street cheerleaders whistled past
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though they should have seen it coming. they should be ashamed of themselves for a recommendation that reminds me of the first internet wave which crashed on the shore drowning everyone involved including analysts who told us to come in because the water was fine. the most tragic thing about zynga is this was so easy to see coming. never forget. those who forget the market's history are doomed to repeat it. stick with cramer. organic artichokes, organic lettuce, organic kale... does your cauliflower have a big carbon footprint? not at all. that's great. melons!!! oh yeah!! well that was uncalled for. uhh... mr. gallagher. incoming!!! hahaha! it's wasteful. you know jimmy. folks who save hundreds of dollars switching to geico sure are happy. how happy, ronny? happier than gallagher at a farmers' market. get happy. get geico. fifteen minutes could save you fifteen percent or more. time out. sweet.
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just like we were afraid of, facebook reported a truly disastrous number. massive deceleration. not what we wanted to see. they needed to kill it and they did the opposite. the people who were selling from the get-go knew more than the people who were buying. i don't want to touch it. starbucks is a great growth company. it was not a good quarter. that doesn't mean it can't be further down the road. good quarter for amazon. shows you've got to keep doing the homework. initially it cre

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